FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

Insider buying declined last week with insiders buying $118.14 million of stock compared to $174.82 million in the week prior. Selling on the other hand increased with insiders selling $2.25 billion of stock last week compared to $2.08 billion in the week prior.

Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week went up to 19.07. In other words, insiders sold more than 19 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 11.89.

Follow up:

We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.

Insider Sell Buy Ratio August 7, 2015

Note: As mentioned in the first post in this series, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.

Director Mitchell P. Rales acquired 261,600 shares of this manufacturing and engineering company, paying $38.41 per share for a total amount of $10.05 million. Mr. Rales increased his stake by 2.60% to 10,321,361 shares with this purchase. 250,000 of these shares were purchased indirectly by Colfax Capital Corporation and 1,500 shares were purchased indirectly by Mr. Rales as custodian for his daughters.

It is interesting to see Mr. Lampert join Mr. Berkowitz in purchasing shares of Sears. We have seen Sears rally strongly following Mr. Lampert’s purchases in the past but the stock then settles lower following disappointing operating performance at Sears.

Director Lester B. Knight acquired 75,000 shares of this risk management, HR services and insurance company, paying $100.79 per share for a total amount of $7.56 million. These shares were purchased indirectly through a trust.

Executive Chairman Vincent J. Viola acquired 200,000 shares of this high frequency trading firm, paying $20.66 per share for a total amount of $4.13 million.

The firm made news when it filed its prospectus to go public and revealed that it only had a single losing day in more than 1,000 trading days. The company pulled its IPO last year following the release of Michael Lewis’ book about high frequency trading Flash Boys and instead went public earlier this year.

Shares of this midstream energy services provider were acquired by 6 insiders:

Director James T. Hackett acquired 100,000 shares, paying $27.72 per share for a total amount of $2.77 million. Mr. Hackett increased his stake by 606.17% to 116,497 shares with this purchase.

Chief Operating Officer Aj Teague acquired 35,925 shares, paying $28.38 per share for a total amount of $1.02 million. Mr. Teague increased his stake by 2.72% to 1,356,895 shares with this purchase. 12,600 of these shares were purchased indirectly by Mr. Teague’s spouse.

Chief Administrative Officer W. Randall Fowler acquired 3,000 shares, paying $28.47 per share for a total amount of $85,406. Mr. Fowler increased his stake by 0.41% to 736,083 shares with this purchase.

Group Senior Vice President Gerald R. Cardillo acquired 600 shares, paying $28.55 per share for a total amount of $17,130. Mr. Cardillo increased his stake by 0.34% to 176,174 shares with this purchase.

Director Michael H. Steinhardt sold 707,961 shares for $25.73, generating $18.22 million from the sale.

Chief Financial Officer Amit Muni sold 475,000 shares for $25.46, generating $12.09 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

Chief Investment Strategist Luciano Siracusano III sold 40,000 shares for $25.85, generating $1.03 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

Director Anthony Bossone sold 6,672 shares for $25.99, generating $173,405 from the sale.

President & CEO, Azamara Club Cruises Lawrence R. Pimentel sold 7,000 shares for $91.00, generating $637,000 from the sale. 2,000 of these shares were sold as a result of exercising options immediately prior to the sale.

President, Chief Operating Officer Adam M. Goldstein sold 4,184 shares for $91.08, generating $381,094 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

No feedback yet

Econintersect Investing Blog

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet